Danone saw 11% growth compared to last year in its infant formula division for the first quarter of 2015. While this was back on the growth seen in the last quarter of 2014 (up 28.1%), it may reflect a more normalised growth rate as the negative effects of last year’s Fonterra scare fully unwind – it lost significant market share to competitors Nestle and Unilver as a result.
Danone saw 11% growth compared to last year in its infant formula division for the first quarter of 2015.
While this was back on the growth seen in the last quarter of 2014 (up 28.1%), it may reflect a more normalised growth rate as the negative effects of last year’s Fonterra scare fully unwind – it lost significant market share to competitors Nestle and Unilver as a result.
Volumes were up 4.2%, with prices adding a further 7.4%.
In China, demand for ultra-premium baby food brands, mostly sold online, was strong. The premium brand Nutrilon Platinum continued to win market share among specialised distribution stores.
However, sales of the Dumex brand products remained well below levels observed in early 2013.
In Europe, Q1 sales showed double-digit growth driven by the international success of brands such as Aptamil and Nutrilon.
The world’s largest yoghurt maker, which has yet to see a recovery in its core European dairy business, said economic conditions looked set to stay difficult, with deflationary consumer trends continuing in Europe.
Total sales, which include the effects of foreign exchange fluctuations, reached €5.471bn, up 8.1% on a reported basis.
Danone kept its 2015 target of like-for-like sales growth of between 4-5%.
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